Price Gains Stay on Fast Track in May

Home prices continue to see significant gains as inventory limits buyers, ""CoreLogic"":http://www.corelogic.com/ said in its latest Home Price Index (HPI) report.

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The index rose 12.2 percent (including distressed sales) year-over-year in May, once again marking the biggest annual increase since 2006. On a month-over-month basis, prices were up 2.6 percent--making May the 15th straight month to see prices pick up from the prior month.

Excluding distressed sales, prices were up 11.6 percent over May 2012 and 2.3 percent over April 2013.

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Including distressed sales, the five states with the highest price appreciation were Nevada (26 percent), California (20.2 percent), Arizona (16.9 percent), Hawaii (16.1 percent), and Oregon (15.5 percent). Only two posted home price depreciation: Delaware (-0.6 percent) and Alabama (-0.1 percent).

Looking at the top 100 core-based statistical areas (CBSAs) measured by population, 97 showed year-over-year gains in May, CoreLogic reported--up from 94 in April.

""Home price appreciation, particularly in much of the western half of the U.S., is increasing at a torrid pace,"" said Anand Nallathambi, president and CEO of CoreLogic. ""Across the country, pent-up demand and continued low interest rates are fueling strong demand for a limited inventory of properties. We expect that trend to continue to drive up prices throughout the balance of the summer months.""

The CoreLogic Pending HPI for June projects prices to rise 13.2 percent year-over-year and 2.9 percent month-over-month (including distressed sales) as summer heads into full swing. Excluding distressed sales, June prices are poised to rise 12 percent year-over-year and 2 percent month-over-month.